Trump tariff fallout begins as layoffs, price hikes and retaliation tank markets: Live

Canada will impose 25% tariffs on vehicles imported from the United States, Prime Minister Mark Carney announced, matching Trump’s tariffs on imported vehicles that took effect today.

The tariffs will only apply to autos that are not compliant with USMCA, the North American free trade agreement, Carney said. He said the tariffs will not affect auto parts or vehicle content from Mexico.

“We know the benefits of our integrated production system,” Carney said.

He added that Canada is “developing a framework for auto producers to avoid our counter tariffs, as long as they maintain their production and investment in Canada.”

— Michele Luhn

Commerce Secretary Howard Lutnick said Trump “is not going to back off” his newly announced tariffs.

“I don’t think there’s any chance” that Trump will reverse course, Lutnick said in a CNN interview.

“This is the reordering of global trade, right? That’s what’s going to happen,” he said.

Asked to clarify, Lutnick said, “the president is not going to back off.”

But, he added, “countries can fix their tariffs, their non-tariff trade barriers, which are much, much rougher.”

The comments came as some Trump allies have expressed hope that the sweeping tariffs are negotiating tools to secure better trade relationships, rather than permanent import taxes.

— Kevin Breuninger

Trump’s tariffs have boxed in retailers — and jeweler Pandora is not immune.

The Danish company said it expects an annual hit of 1.2 billion crowns (roughly $178 million) from the new duties on U.S. imports, before it takes any steps to mitigate the effects. For 2025, it expects a hit of 700 million crowns (about $103 million).

Pandora said it could raise prices or change its supply chain to help offset the levies.

The jeweler said U.S. tariffs of 36% on imports from Thailand will have the biggest effect on its business. Pandora said it made 92% of its jewelry at facilities in Thailand as of last year.

— Jacob Pramuk

A bipartisan bill introduced to the Senate seeks to require that Congress approve tariffs if they are to continue 60 days after their implementation, NBC News reported.

The bill also would require the president to notify Congress within 24 hours of announcing new tariffs.

“For too long, Congress has delegated its clear authority to regulate interstate and foreign commerce to the executive branch,” said Sen. Chuck Grassley, R-Iowa, who is co-sponsoring the bill with Sen. Maria Cantwell, D-Wash.

It is not clear when or even if the bill will be voted on.

— Dan Mangan

Commerce Secretary Howard Lutnick pushed back on the looming prospect of grocery prices suddenly rising as a result of Trump’s new tariffs.

“I don’t think that’s going to happen,” Lutnick said on CNN when asked what he would tell Americans who voted for Trump and are about to face higher store prices.

Lutnick said that when the U.S. opens the markets that he says are blocked by other countries, “our volumes grow, our farmers will thrive, and the price of groceries will come down.”

“Let Donald Trump run the global economy. He knows what he’s doing,” Lutnick said.

— Kevin Breuninger

Investors are seeking safety in fast-food chains, betting consumers will trade down to cheaper restaurant meals as tariffs weigh on their wallets.

Shares of McDonald’s, Yum Brands and Restaurant Brands International are up more than 1%, while other publicly traded restaurant companies’ shares take a beating.

Shares of Chipotle Mexican Grill and Texas Roadhouse are both down 3%. The two chains have reported stronger sales than the broader industry in recent quarters. Other eateries have seen even steeper declines in their share prices. Starbucks stock dropped 11%, Shake Shack’s shares slid 13% and Sweetgreen’s tumbled 16%.

Typically, during economic downturns, fast-food chains report stronger sales than other restaurants, as price-sensitive consumers trade down from full-service dining and fast-casual lunches to less pricey combo meals at McDonald’s or Burger King.

The restaurant industry is already anticipating that the latest wave of tariffs will mean higher menu prices for diners.

“The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers,” the National Restaurant Association said in a statement.

— Amelia Lucas

Shares of GE HealthCare, which manufactures medical imaging, ultrasound and other health devices, tumbled more than 10% on Thursday following Trump’s tariff announcement. GE HealthCare produces its products in more than 20 countries and serves customers in more than 160 countries around the globe, according to its website.

“Our top priorities are to make sure patient and customer deliveries for products and services are not interrupted under any circumstances and at the best quality and cost possible,” a GE HealthCare spokesperson told CNBC.

“This is a dynamic issue,” the spokesperson noted. “Our teams are working on potential mitigation plans as these trade policies evolve. We will provide an update on our next earnings call.”

Shares of Siemens Healthineers, a German med tech company, fell nearly 7% on Thursday. The company did not immediately respond to CNBC’s request for comment.

— Ashley Capoot

Trump’s aggressive and sweeping “reciprocal tariffs” affected more than 180 countries, from major trading partners to even tiny islands and remote locations.

The tariff plan targeted numerous external Australian territories, including Heard and McDonald Islands, one of the most remote locations on earth, populated by seals and penguins.

Norfolk Island, also an Australian territory with a population of nearly 2,000 people, was hit with some of the highest tariffs of 29%, despite Australia only facing 10% tariffs.

“I’m not quite sure that Norfolk Island, with respect to it, is a trade competitor with the giant economy of the United States, but that just shows and exemplifies the fact that nowhere on earth is safe from this,” Australian Prime Minister Anthony Albanese said, according to The Guardian.

Read the full story here.

— Sawdah Bhaimiya

French President Emmanuel Macron urged companies in his country to pause investments in the U.S. after Trump’s imposition of sweeping tariffs.

He said Trump’s tariffs are a shock for international trade after his meeting at the Élysée Palace with representatives of industries affected by the heavy levies.

Trump’s plan sets a 10% baseline tariff across the board, while adding steep duties on many countries, including 34% on China and 20% on the European Union.

— Yun Li

Former Trump Treasury Secretary Steven Mnuchin said he believed “the market can adjust” to the new 10% baseline tariff on nearly all other countries, but hoped the larger tariff rates will be “negotiated down.”

“I do hope there’s the ability to negotiate them down, because, as we’ve seen for certain businesses, it is going to take a long time to move that manufacturing base,” he said on CNBC’s “Squawk on the Street.”

“And we’ve seen the stock market, particularly in certain stocks, react pretty negatively,” he said.

— Kevin Breuninger

In another executive action signed Wednesday, Trump ended the so-called de minimis exemption on China and Hong Kong that allowed shipments worth less than $800 to enter the U.S. duty free.

The trade loophole has helped Chinese cheap-goods manufacturers such as Temu and Shein flood the U.S. with inexpensive products.

It will end May 2, according to the executive order.

Trump had previously ended de minimis in early February but paused that move days later following concerns it could overwhelm U.S. Customs and Border Protection.

— Kevin Breuninger

On a brutal day for the stock market, shares of retailers — including Target and Nike — have been hammered particularly hard.

Target, Nike, Wayfair, American Eagle Outfitters, Ugg and Hoka parent Deckers, as well as toymaker Hasbro all hit 52-week lows.

Retailers are expected to face tough choices in the weeks and months ahead, as they manage higher costs from broad tariffs on imports from nations including China and Vietnam, which are major manufacturing hubs for shoes, clothing, toys, furniture and more.

Some, such as Steve Madden, were slashing their sourcing from China in recent years and moving more production to other countries such as Vietnam. Yet, now, even imports from many of those alternative countries are subject to tariffs. Goods from Vietnam, for example, will face a 46% tariff.

Some sectors of retail are particularly exposed: Nearly a third of footwear imports in the U.S….